GRAND RAPIDS, MI — Dow Chemical has reported that in a continuing attempt to offset increasing costs for energy and raw materials, it will raise the prices of its products again by as much as 25%.

This follows the company's across-the-board price increases of as high as 20% that were implemented June 1st.

Dow's competitors, such as Rohm & Haas and Celanese have also recently raised prices to their customers.

The company's profit margins have reportedly fallen from 9.8% in 2005 to 5.4% in 2007, a drop of nearly 37%. During the 12-month period that ended March 31, 2008, the margin narrowed further to 5.1%.

Dow will also reportedly add a freight surcharge for its North American customers of $300 for shipments by truck and $600 for shipments by rail, which will go into effect August 1st.

In addition, the company will reduce or idle production at some manufacturing plants and will implement cost-cutting measures at its automotive plants in both the U.S. and overseas.

According to company spokesman Chris Huntley, the company had not yet worked out the details of its cost-cutting plan, but he said "it will certainly involve some people reductions, it will involve looking at how we can reduce costs around facilities, overhead and the external spending component."

Company chief executive Andrew Liveris, citing the increase in global energy costs, said that the steps are "extremely unwelcome but entirely unavoidable."